Australis Leisure Pty Ltd and Australian Trade and Investment Commission (Austrade)

Australis Leisure Pty Ltd sought review of a decision by the Australian Trade and Investment Commission (Austrade) concerning its eligibility for export market development grants for the 2016/2017 and 2017/2018 grant years. The core dispute revolved around whether the company met specific criteria outlined in Austrade's Administrative Guidelines for determining if Australia would derive a significant net benefit from the sale of its goods outside Australia. The matter was heard by Deputy President Sosso of the Tribunal.

The Tribunal was required to assess Australis Leisure's eligibility against four criteria, specifically focusing on two: whether the business assets used in making the goods ready for sale (other than manufacture) were primarily or substantially based in Australia, and whether the activities (other than manufacture) which resulted in the goods being made ready for sale were primarily or substantially carried on in Australia. Additionally, the Tribunal considered whether a significant proportion of the value of the goods was added within Australia.

In its reasoning, the Tribunal noted that Australis Leisure conceded it did not meet the criterion regarding business assets. Regarding the activities criterion, while acknowledging the significant role of Mr Price in the overall business and the design and development of the outdoor furniture, the Tribunal found that the international activities, particularly those managed by Ms Handitia, were substantial and not primarily or substantially carried out in Australia. The Tribunal also considered the value-added criterion, examining the applicant's submissions regarding its sales margin and mark-up for the export market, but ultimately found that the activities (other than manufacture) which resulted in the outdoor furniture being made ready for sale were not primarily or substantially carried on in Australia during the relevant grant years.